Sources say CBoT financially fit to fight

Sources close to Chicago Board of Trade (CBoT) have
dismissed suggestions that the exchange does not have the
financial resources to fight a prolonged price war with Eurex
US.

In a report issued last week, Jeffries analyst Charlotte
Chamberlain said that despite its lacklustre start,
"Eurex
US appears more likely to slowly chip away CBoT's prime
business rather than retreat quickly, using their financial
prowess to erode CBoT profitability."

However, sources close to CBoT told FO Week that,
even with the February decision to slash fees by 65-75%, it
could still pull in a profit this year. CBoT must pull in an
average daily volume of 1.6m contracts to break even in 2004,
it was claimed. A 2m per day volume, which looks easily
attainable at the moment, would generate $10-12m for the
exchange, one source said.